1. Prospective Approach Retrospective Approach
Prospective application is the application of a
new accounting policy to transactions after
the date of the policy change, with recognition
of the effect of changes in accounting
estimates in the current and future periods.
The change is not applied to prior periods.
1
Prospective application is the application of a
new accounting policy to transactions after
the date
Retrospective means Implementation new
accounting policies for transaction, event, or
other circumstances as if it had been
implemented.
In other words, retrospective will effect
presentation of financial statements for
previous periods. of the policy change, with
recognition of the effect of changes in
accounting estimates in the current and future
periods. The change is not applied to prior
periods.
2. Prospective Approach Retrospective Approach
In Prospective approach the contract start date and
cash flow start date will be the go-live date
In Retrospective approach the contract start date and
cash flow start date will be the original contract start
date
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3. Prospective Approach Retrospective Approach
3
In Prospective approach the condition valid date will
be the go-live date
In Retrospective approach the condition valid date
will be the original contract start date
4. Prospective Approach Retrospective Approach
4
In Prospective approach the start of consideration
date will be the go-live date
In Retrospective approach the start of consideration
valid date will be the original contract start date but
the first posting will be the go-live date
6. Prospective Approach Retrospective Approach
6
In Prospective approach the Valuation will start from
the go-live date
In Retrospective approach there will be two
valuations. One will be until go-live date with already
posted. The second valuation will be after go-live date
